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Why to Shy Away from Venture Capital
The Smart Startup: “While venture capital can be a tremendous boon to a tiny fraction of the companies pursuing it, in the vast majority of cases it presents the entrepreneur with a ‘Faustian Bargain. Venture capital brings with it tremendous meddling and pressure from venture capitalists who in this day and age typically lack both the operating and industry depth of their predecessors. The effect of this on fledgling ventures is loss of control by the entrepreneur which then frequently leads to bad–and sometimes fatal–business decisions being made.”
via Loyd of the Yosemite Blog.
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